What level for the German 10-year interest rate in five years?
The German 10-year interest rate is currently - 0.67 %; financial markets expect it will be -0. 2 1% in five years. What will the trend in the euro-zone 10-year interest rate in the next five years depend on ? The organisation of labour markets in euro-zone countries; it seems that employees’ bargaining power is being somewhat restored ; The functioning of goods and services markets in the euro zone; could the level of product sophistication be improved , restoring companies’ pricing power? Currently, that is not yet the case; The ECB's behaviour: will it change its objective if inflation remains lower than the 2% inflation target? Will it keep interest rates at zero? The supply-demand equilibrium for government bonds: population ageing could lead to a decline in private sector savings; will the European budgetary rules become less stringent?